The decline in rate of inflation and high real interest rates have prompted State Bank of India to cut the savings bank deposits rate from 4 per cent to 3.5 per cent on deposits below Rs. 1 crore. This cut in savings bank rate will prompt many banks to follow suit.
The savings bank deposits above Rs. 1 crore will continue to earn 4 per cent interest. The cut in SB rate will enable it to maintain the marginal cost of funds based lending rate at the current level.
Important Takeaways from Above News-
- The Chairman of SBI is Smt. Arundhati Bhattacharya.
- SBI is Headquartered in Mumbai, Maharashtra.
Source- The Hindu Business Line